Second quarter 2007 results 2 Disclaimer All statements in this - - PowerPoint PPT Presentation

Second quarter 2007 results

Oslo, 8 August 2007

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Disclaimer

All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove

• accurate. Certain such forward-looking statements can be identified by

the use of forward-looking terminology such as “believe”, “may”, “will”, “should”, “would be”, “expect” or “anticipate” or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. Should

• ne or more of these risks or uncertainties materialise, or should

underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed or expected. Prosafe does not intend, and does not assume any obligation to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.

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Agenda

The quarter in brief Financial result for 2nd quarter 2007 Business divisions: status, strategy and outlook Summary

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Q2 2007 in brief

New contract awards Excellent operational results FPSO deliveries and conversion projects on schedule Solid financial results

Strongly positioned for delivering shareholder value and further growing the company

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Income statement

(Unaudited figures in USD million) Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating revenues 118.8 88.2 75.3 207.0 150.4 365.6 Operating expenses (54.0) (39.9) (39.8) (93.9) (71.5) (157.9) EBITDA 64.8 48.3 35.5 113.1 78.9 207.7 Depreciation (15.9) (15.3) (12.5) (31.2) (24.3) (57.7) EBIT 48.9 33.0 23.0 81.9 54.6 150.0 Interest income 1.6 1.9 1.3 3.5 2.7 8.5 Interest expenses (13.8) (12.3) (5.4) (26.1) (10.5) (32.1) Other financial items 7.1 (1.9) 13.8 5.2 18.0 16.6 Net financial items (5.1) (12.3) 9.7 (17.4) 10.2 (7.0) Profit before taxes 43.8 20.7 32.7 64.5 64.8 143.0 Taxes 2.4 (4.6) (2.6) (2.2) (4.0) (14.9) Net profit 46.2 16.1 30.1 62.3 60.8 128.1 EPS, basic and diluted (USD) 1) 0.20 0.07 0.21 0.27 0.35 0.64

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Balance sheet

(Unaudited figures in USD million) 30.06.07 31.03.07 31.12.06 30.06.06 Goodwill 355.0 355.0 355.0 348.7 Rigs 760.3 753.8 763.4 780.3 Ships 701.2 631.0 538.7 413.2 Other non-current assets 281.3 271.5 262.4 9.0 Total non-current assets 2 097.8 2 011.3 1 919.5 1 551.2 Cash and deposits 117.6 141.4 147.2 210.9 Other current assets 121.0 64.8 79.2 84.7 Total current assets 238.6 206.2 226.4 295.6 Total assets 2 336.4 2 217.5 2 145.9 1 846.8 Share capital 63.9 63.9 63.9 60.6 Other equity 1 045.9 1 045.5 1 025.8 923.5 Total equity 1 109.8 1 109.4 1 089.7 984.1 Interest-free long-term liabilities 91.6 104.0 101.7 132.2 Interest-bearing long-term debt 862.8 813.8 622.0 495.6 Total long-term liabilities 954.4 917.8 723.7 627.8 Dividends payable 0.0 0.0 147.0 0.0 Other interest-free current liabilities 166.4 158.1 168.6 184.9 Current interest-bearing debt 105.8 32.2 16.9 50.0 Total current liabilities 272.2 190.3 332.5 234.9 Total equity and liabilities 2 336.4 2 217.5 2 145.9 1 846.8

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Offshore Support Services

(Unaudited figures in USD million) Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating revenues 95.8 66.4 53.0 162.2 104.5 272.6 Operating expenses (43.0) (28.7) (30.0) (71.7) (49.7) (113.6) EBITDA 52.8 37.7 23.0 90.5 54.8 159.0 Depreciation (11.4) (11.3) (8.3) (22.7) (16.7) (41.7) EBIT 41.4 26.4 14.7 67.8 38.1 117.3

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Floating Production

(Unaudited figures in USD million) Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating revenues 22.9 21.7 22.2 44.6 45.6 92.6 Operating expenses (8.1) (8.5) (9.0) (16.6) (19.6) (39.1) EBITDA 14.8 13.2 13.2 28.0 26.0 53.5 Depreciation (4.4) (3.9) (4.1) (8.3) (7.4) (15.7) EBIT 10.4 9.3 9.1 19.7 18.6 37.8

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Cash flow

(Unaudited figures in USD million) Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating activities 6.1 42.9 56.4 49.0 167.6 232.8 Investing activities (102.4) (107.1) (717.1) (209.5) (874.3) (1 207.4) Financing activities 72.5 58.4 652.8 130.9 614.0 818.2 Net cash flow (23.8) (5.8) (7.9) (29.6) (92.7) (156.4) Cash at beginning of period 141.4 147.2 218.8 147.2 303.6 303.6 Cash at end of period 117.6 141.4 210.9 117.6 210.9 147.2

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Key figures

Q2 07 Q1 07 Q2 06 H1 07 H1 06 2006 Operating margin 41.2 % 37.4 % 30.5 % 39.6 % 36.3 % 41.0 % Equity ratio 47.5 % 50.0 % 53.3 % 47.5 % 53.3 % 50.8 % Return on equity 16.7 % 8.2 % 16.6 % 11.3 % 17.1 % 16.8 % Return on capital employed 10.0 % 10.0 % 8.2 % 8.6 % 9.6 % 11.6 % Net interest bearing debt 851.0 704.6 334.7 851.0 334.7 491.7

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Shareholders

AS AT 23.07.2007

• No. of shares

Ownership BW Group 24.3 % UBS (nom.) 7.7 % Folketrygdfondet 6.2 % Brown Brothers Harriman 5.3 % State Street Bank & Trust (nom.) 3.2 % GMO 2.3 % JP Morgan Chase Bank (nom.) 2.2 % Pareto 1.6 % Vital 1.4 % Goldman Sachs (nom.) 1.4 % Total 10 largest shareholders 55.7 % Total no. of shares: 229 936 790 78.8 % 3 257 245 128 082 324 3 311 171 3 783 250 4 971 059 55 932 990 17 742 555 14 252 435 12 224 268 7 423 566 5 183 785 Foreign holding:

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Offshore Support Services – status

Six-month contract for Safe Bristolia

• n the UKCS

Excellent operational performance and high uptime Number of new prospects continues to increase due to:

Increasing number of fields Increased offshore maintenance requirements Emerging decommissioning market

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Offshore Support Services – contract status

1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11

Gulf of Mexico North Sea/ West Africa Asia Mobilisation Option Contract Yard Standby

Safe Hibernia Jasminia Safe Regency Safe Lancia Safe Britannia Safe Concordia MSV Regalia Safe Scandinavia Safe Caledonia Safe Esbjerg Safe Bristolia Safe Astoria

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Offshore Support Services – outlook

Rig market looks increasingly strong in a long term perspective Increasing dayrates going forward

Available rigs will benefit from the increasing dayrates

Renewal of the current Mexico contracts

High likelihood of higher dayrates and increased earnings in 2008

Safe Scandinavia

Strong market position and good assets provide attractive basis for future contracts

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Floating Production – status

FPSO Polvo and FPSO Umuroa arrived in field according to schedule Ongoing three conversion projects are progressing according to plan Project management system developed over the last two years has been implemented

FPSO Polvo arriving in Rio

Strong underlying performance and high uptime Two-year contract extension of FSO Endeavor 7 + 8 yr FPSO contract for Apache in Australia

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Floating Production – status (cont)

Strong competitive edge based on

Unique patented in-house technology Solid project management experience Excellent operational track-record

Engineering department expects a high number of variation orders

Increased earnings Improved rate of return Possibility for a longer life at the field

Fortifying our position as one of the leading players in the FPSO business

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Floating Production - contract status

Madura Jaya (3) Endeavor Al Zaafarana (2)

• Petr. Nautipa (1)

Espoir Ivoirien Abo Polvo Umuroa LoI FPSO Brazil FPSO Australia

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Production contract

CNR, Angola Canadian Natural Resources, Ivory Coast Ł 2022 Vaalco, Gabon

(1) 50% ownership: 5- year term, cancellable from September 2011; (2) Management contract; (3) 50% ownership

• 1994 Zaafarana Oil Comp, Gulf of Suez

Agip, Nigeria Kodeco Oil, Indonesia

• 1997 Aban Offshore, India

Devon, Brazil Ł 2022 NZOP, New Zealand Ł 2017

Project phase Options Letter of Intent

Ł 2024 Petrobras, Brazil Ł 2023 Apache, Australia Ł 2023

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Status conversion projects:

FPSO Cidade de São Mateus for Petrobras, FPSO for undisclosed client (LOI), FPSO for Apache Engineering progressing according to plan Long lead items have been ordered Target arrival in field: Q4 2008 Target first oil: early 2009

M/T Navarin M/T Europe M/T Kudam

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Floating Production – outlook

Continued high level of bidding activity Well positioned in high growth markets Ambition and capacity to commence:

One additional FPSO conversion later this year One additional project within 12 months

Strong foundation for continued growth

FPSO Umuroa

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Summary and outlook

Strong market positions and international presence Rig market continues to improve and looks increasingly strong in a long term perspective FPSO growth continues at high pace in tight market.

Strongly positioned for delivering shareholder value and further growing the company